Implications of Higher yields for 10-yr Treas(ZT)

Implications of Higher yields for 10-yr Treas	ray_heritage	NEW 6/21/2007 9:17:09 PM
DanDenning, of The Daily Reckoning (Australia) nails what I think will bethe deciding factor in whether or not the debacle in the subprimesector develops into a contagion. "Merrill has agreed toscupper its plans because it was worried in that saving its own behindin the Bear Stearns mess, it might do a lot of damage to other WallStreet firms. The loss of public confidence in the intelligence of thebrokerage industry would not be good for business. “It's an industryissue,” Brad Hintz of Sanford C. Bernstein & Co. told Bloomberg.“How many other hedge funds are holding similar, illiquid, esotericsecurities? What are their true prices? What will happen if more blowup?” Denning says,"We didn't find out the answer to thatquestion this week. But it's a long summer. Yields on ten-year USTreasury notes are rising. The more they rise, the more the truth willout."